Dive Brief:
- A California assemblyman is pulling the bill he authored which would have imposed a two-cents-per-ounce tax on sugary beverages.
- The bill had been scheduled for its first committee vote on Tuesday, but Assemblyman Richard Bloom (D-Santa Monica) said he couldn't garner enough votes.
- Several soda tax bills have failed in Sacramento, in part due to heavy opposition from beverage industry giants like Coca-Cola, PepsiCo, and the California Nevada Beverage Association, which spent at least $413,000 on lobbying since the beginning of 2015, according to California state records. The California Restaurant Association and California Chamber of Commerce also criticized the bill, saying it threatened local jobs in the beverage, retail, and restaurant industries.
Dive Insight:
The bill's withdrawal is a win for soda and sugary drink manufacturers. California is a state that often incites nutrition-related changes that eventually become more widespread across the country. If more California cities were to propose and pass soda taxes (as Berkeley already did in 2014), then the push for this type of legislation could become more common.
The bill's failure also demonstrates the lack of traction that many of these soda tax bills are receiving. Supporters of this legislation cite statistics about decreased consumption linked to Mexico's soda tax. Supporters also argue that the tax could be a revenue driver for local and state governments, which could complicate the beverage industry's fight.
Soda taxes' efficacy has long been questioned by opposing legislators and beverage manufacturers and industry groups. Legislators don't believe a tax will work, and it could create unanticipated downsides in its wake, such as job losses in the local community. Opponents also argue that people will still buy soda anyway and that this tax targets only sugary beverages when obesity generally involves many different types of foods and beverages.
It's difficult to say what type of evidence or movement would be needed for these bills to gain more traction. Consumers already say they want less sweeteners in their foods and beverages, yet purchasing decisions suggest otherwise, according to the 2015 Sweetener360 report.